Get StartedThere are several types of business entities which can be formed. It is recommended that you read Operating Agreement. This document is similar to a partnership agreement, because it defines how the LLC will be operated and managed, and how the profits and losses will be distributed.The formation of an LLC may also be subject to federal and/or state securities laws, especially if all of the owners ("members") will not be actively managing the LLC. Consult an attorney or other advisor for further information.